Rise of European Imperialism and Global Trade Shifts

Imperialism: External Domination

Imperialism is a form of state rule characterized by external domination. This involves the external control of foreign territories without their absorption into the ruling nation-state, leading to an unequal distribution of power between the sovereign state and its dependencies.

Motives for Imperialism

• Economic: Plunder, exploitation, and settlement.
• Non-Economic: Spreading religion and ensuring security.

Opportunities for imperialism stemmed from pre-existing unequal distributions of power. While not the ultimate trigger, technological advances in ship design, navigation, and armament provided a significant European advantage, often coupled with resistance to diseases.

Mercantilism and Economic Growth

Mercantilism dominated economic growth from the 15th to the 18th centuries and motivated colonial expansion. The main idea was the essential importance of interventionist governmental control of foreign trade to promote:

• Regulation
• Monopolies
• Custom duties

Pros and Cons of Mercantilism

Pros: It was necessary to enable the transition to capitalism and aided the emergence of nation-states.

Cons: It restricted the growth of trade and overall prosperity.

European Expansion: Economic Objectives

Economic objectives included acquiring treasure (gold and silver) and controlling trade routes for spices, silk, and sugar. Overseas probing by Portugal and Spain enabled initial acquisitions. Spain and Portugal were successful in the 16th century, declining in the 17th and 18th centuries as the Dutch and British rose.

Portugal's Role

Portugal benefited from long experience in sea-going expeditions. Motives were inspired by religious zeal, the quest for gold, and spices from Asia. Key achievements include:

• Rounding the Cape of Good Hope.
• Vasco da Gama reaching India.
• Cabral reaching Brazil and India via Africa.

In the 16th century, the East Indies spice trade developed significantly.

Spain's Conquests

Columbus voyaged westward, reaching the Caribbean. Spain found vulnerable populations and treasure, leading to the conquest of the Aztec and Inca empires in the 16th century. This involved the plunder of silver and gold and the exploitation of native populations.

The Dutch Republic

The Dutch Republic achieved prosperity through shipbuilding, shipping, agriculture, and woolen textiles, excelling in North Sea trade. Being more efficient than competitors, the Dutch became the dominant European maritime power in the 17th century, leveraging long experience in Baltic and North Sea trade. Their decline in the 18th century was due to rivalry with France and Britain.

Emergence of Nation States

Nation-states evolved from feudalism in Europe. Britain engaged in early voyages to North America, as did France (Canada) and Scandinavian nations (Baltic trade). Once the opportunities presented by imperialism were known, exploitation became likely, providing avenues for settlement and agricultural expansion based on new resources.

The Spice Trade and Global Shifts

Spices were consumed in Europe as medicines and food flavorings. Main spices included pepper, cinnamon, cloves, nutmeg, and ginger. Interest in spices drove the expansion of sea routes, notably finding a sea route around Africa, marking the Age of Discovery and European domination in the East.

Global trade shifted:

1. Slaves moved from Africa to America.
2. Sugar and tobacco moved from America to Europe.
3. Manufactured goods moved from Europe to America.

Sugar production became central in the Caribbean.

Finance and Capital

Developments included loan contracts and coinage. The 17th century saw an expanding land market and the expansion of banking for trade credit, though there was restricted interest in traditional loans. This era also saw the concept of "imaginary money" emerge.